Try as it might, the Dow Jones Industrial Average just couldn’t crack the 20,000 mark on Friday, missing it by just 0.37 points. Still, the S&P 500 and the Nasdaq Composite tiptoed into record-high territory. The S&P 500’s close of 2,278.96 — 0.35% better than Thursday’s last trade — was a record-breaking close. A solid employment report for December helped to fan the bullish flames.
It wasn’t a banner day for every stock, though. AT&T Inc. (NYSE:T), Regeneron Pharmaceuticals Inc (NASDAQ:REGN) and Teva Pharmaceutical Industries Ltd ADR (NYSE:TEVA) each ended the day in the red, and by more than a little bit.
Here’s a closer look at what derailed each one.
Teva Pharmaceutical Industries Ltd ADR (TEVA)
Drugmaker Teva Pharmaceutical ended the week on a dire note, announcing a lackluster 2017 sales and earnings outlook. For the year currently underway, Teva expects to earn between $4.90 and $5.30 per share on revenue of between $23.8 billion and $24.5 billion. Analysts were calling for a top line of $24.8 billion and a profit of $5.40 per share. The company is on pace to earn $5.13 per share for the recently completed year, on sales of $21.7 billion.
CEO Erez Vigodman attributed 2016 weakness to being a “transition year,” prompting the need for better execution this year. The tumble Teva took on Friday, however, suggests investors aren’t convinced the transitional turbulence is entirely in the past.
TEVA shares ended the day down 7.5%.
Regeneron Pharmaceuticals Inc (REGN)
Teva wasn’t the only biopharma name to be up-ended on Friday. Regeneron Pharmaceuticals was also the victim of a surprising and a relatively unusual decision by a federal judge ordering the company to take its cholesterol fighting drug Praluent. The judge determined that Praluent infringed on a nearly identical drug called Repatha, jointly made by Sanofi SA (ADR) (NYSE:SNY) and Amgen, Inc. (NASDAQ:AMGN).
Washington University law professor Rachel Sachs commented, “It’s very strange for a judge to take one product off the market when there are patients on the medicine already. I am shocked.”
Regeneron plans on appealing the decision, though such efforts are generally unsuccessful.
REGN finished the day at $358.68, lower by 5.8%. Amgen shares, on the other hand, advanced 2.5% for the trading session.
AT&T Inc. (T)
Last but not least, just a few hours after AT&T said its ambition to merge with entertainment giant Time Warner Inc (NYSE:TWX) would likely sidestep any Federal Communications Commission concerns by simply divesting one television station, President-elect Donald Trump chimed in again with his distaste of the idea.
The President doesn’t have direct authority to prevent such a pairing; that responsibility lies with the Federal Communications Commission and/or the Department of Justice. But, the President does wield a great deal of influence, and may be able to cultivate a headwind that bars the deal.
Worried T shareholders sent the stock down to the tune of 3.1% on Friday.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.